Analysis & Opinion

LONDON, June 28 (Reuters) - Google has revealed
that its new UK headquarters is a building longer than the Shard
skyscraper is tall.

The so-called groundscraper at the King's Cross Central
development is the latest overseas property deal by the
cash-rich U.S. internet group, which will house all of its
London staff under one roof when completed in 2016.

Google revealed designs for the low-rise one million square
feet scheme on Friday after announcing its move to King's Cross
in January.

At 330 metres long, it exceeds the height of the 310-metre
tall Shard, western Europe's tallest skyscraper.

Swiss bank UBS is undertaking a similar large-scale low-rise
scheme at the Broadgate complex in London's main financial
district.

Several thousand people will work at the site - a large
scale operation Google would have found difficult to house in
space-constrained central London where land is also more
expensive.

Google has spent about 650 million pounds to buy and develop
the 2.4 acre site and the finished development will be worth up
to one billion pounds, sources told Reuters.

Construction will start early next year subject to planning
approval and it will be one of the internet giant's largest
offices outside its so-called Googleplex corporate headquarters
in Mountain View, California.

The internet giant is a prized tenant for landlords and its
presence is expected to draw other technology companies to
King's Cross - especially small start-ups - and help bump up
rents.

The new site is likely to include a 20,000 square feet area
for bike parking, about the size of seven tennis courts, and
features a climbing wall between floors, a source close to the
project told Reuters.

The company's offices are famous for perks like gourmet
food, bowling alleys, roof gardens, high-tech gyms and on-site
medical staff and massages.

King's Cross Central, which sits on a former fish, coal and
grain goods yard to the north of the city, spans 67 acres and
will contain homes, offices and shops. It is being built by the
King's Cross Central Limited Partnership which includes
developer Argent Group.

Google has traditionally leased its overseas offices but in
the past two years has purchased premises in Paris, Dublin, and
now London, its filings show.

As of December 31, 2011, Google had $44.6 billion of cash,
with $21.2 billion of that held offshore, according to its 2011
annual report. If the funds held offshore were repatriated, they
would be subject to U.S. taxes, Google said.

Tax campaigner and accountant Richard Murphy told Reuters at
the time of the January announcement that the decision to buy
rather than rent was likely "tax motivated", driven by the fact
the company cannot repatriate the cash to the U.S. without
paying a fat tax bill.

Google declined to comment on the tax issue in relation to
its new London building but said such a large-scale investment
was a boost to the Britain's economy.

Earlier this month British MPs described Google's tax
affairs as "contrived" after a Reuters report showed the company
employed staff in sales roles in London, even though it had told
MPs in November its British staff were not selling to UK clients
- an activity that could boost its tax bill substantially.